(A) Pensions.
(1) Straight-life pension.
(a) Firefighters. Upon a firefighter member’s retirement, as provided in this chapter, on or after July 1, 1976, he or she shall receive a straight life pension equal to the sum of 2% or 2.25% for a firefighter member who retires on or after July 1, 1979, or 2.4% for a firefighter member who retires on or after July 1, 1988, however a Fire Chief and Assistant Fire Chief who retires on or after May 1, 1992, shall receive 2.5%; effective July 1, 1991, firefighters who retire on or after that date shall receive 2.5% and all firefighters through the rank of Fire Chief who retire on or after January 1, 1994, shall receive 2.6% and firefighters who retire on or after July 1, 1997 shall receive 2.6% of the first 25 years of service and 2.75% for all service over 25 years, however the Firefighter Union may request a modification in the multiplier to 2.8% for all years of service provided that any increased cost in the city’s contribution to the pension system shall be borne by members of the unit and there shall be no additional cost to the city. The increased costs in the city’s contribution may be offset by an increase in the employee’s pension contributions or by other changes to the pension plan resulting in cost reductions to the city’s contribution rate as determined by the plans actuaries, however a Fire Chief or Assistant Fire Chief who retires on or after March 25, 1999, shall receive 2.6% for the first 25 years of service and 2.75% for all years thereafter of his or her final average salary multiplied by the number of years and fraction of a year of his or her credited service.
(b) Police. Upon a police officer member’s retirement, as provided in this chapter, he or she shall receive a straight life pension equal to 2% or 2.25% for a police officer member who is a police sergeant, police lieutenant, police captain, assistant police chief, or police chief who retires on or after January 1, 1982; however, 2.4% for any such member who retires on or after January 1, 1985, for the first 25 years of credited service and 2.25% thereafter or 2.5% for any such member who retires on or between January 1, 1985, and March 31, 1985, for the first 25 years of credited service and 2.25% thereafter); however, after January 1, 1990, 2.5% for the first 25 years of credited service and 2.25% thereafter; however, effective May 1, 1992, 2.5% for all years of service for an assistant police chief; however on or after January 1, 1994, 2.6% for the first 25 years of service and 2.75% thereafter for a police officer member who is a police sergeant, lieutenant, assistant police chief, or police chief (2.25% for a police officer member who is a police patrol officer and who retires on or after July 1, 1982; however, 2.4% for any such member who retires on or after July 1, 1985, for the first 25 years of credited service and 2.25% thereafter; however, any such member who retires on or after July 1, 1989, 2.5% for the first 25 years of service and 2.25% for each year of service thereafter or for such member who retires on or after July 1, 1993, 2.6% for the first 25 years of service and 2.75% for years of service thereafter) of his or her final average salary multiplied by the number of years, and fraction of a year, of his or her credited service; provided that all POAM and COAM police officer members who retire on or after July 1, 2004 will receive a 2.5% non-compounded annual cost of living adjustment (“COLA”) on all pensions payable at the later of the attainment of age 55 or one year following the employee’s actual retirement date, provided that upon death of the retiree the original COLA will be reduced by the appropriate percentage as elected by the pensioner at the original time of retirement; provided, that the straight life pension of both firefighters and police officers shall be subject to division (B) below.
(2) Optional plans. Upon the retirement of either a firefighter or a police officer, he or she shall have the right to elect, in lieu of his or her straight life pension, to receive his or her pension under an option provided for in § 16.14.
(B) Benefit limitations. The Saginaw Police Officers and Firefighters Retirement System shall not pay any benefit that would exceed the benefit limitations for governmental plans as set forth in § 415 of the Internal Revenue Code, being 26 U.S.C. § 415 and regulations, as amended.
(C) Retirement prior to age 52. In the event an original member retires prior to the attainment of age 52 years, the straight life pension provided for in division (A) above shall be reduced to the applicable amount shown in the following table, for the member’s age (nearest birthday) at the date the member elects to have his or her pension begin.
Table for Police Officer and Firefighter Members | |
Member’s Age* | Percent of Pension Contributed** |
Table for Police Officer and Firefighter Members | |
Member’s Age* | Percent of Pension Contributed** |
47 | 72.7% |
48 | 77.3% |
49 | 82.2% |
50 | 87.6% |
51 | 93.6% |
52 | 100.0% |
* Member’s age (nearest birthday) at beginning date of retirement pension | |
** Percent of pension computed according to § 16.12(A) | |
(D) Death of employee leaving accumulated contributions. Effective July 1, 1986 under changes in the Federal Tax Codes, should a retirant die before the member has received in straight life pension payments a prorated non-federally taxed amount equal to the member’s credit in the Member’s Deposit Fund at the time of the member’s retirement, the difference between the said accumulated contribution and the said prorated non-federally taxed amount of straight life pension payments received by the member shall be paid to such person or persons as he or she shall have nominated by written designation duly executed and filed with the Board of Trustees. If there be no such designated person or persons surviving the said retirant, such difference, if any, shall be paid to the member’s estate. No benefits shall be paid under this division (D) on account of the death of a retirant if any benefits are paid or will become payable under division (E) below or if the retirant elected to receive a pension under either Option A or B provided for in § 16.14.
(E) Surviving spouse benefits. Upon the death of a retiree who retired on or after November 1, 1968, the retiree’s surviving spouse shall receive a pension equal to 60% of the straight life pension the deceased retiree was receiving. No benefits shall be paid under this division (E) on account of the death of a retiree if the member elected to receive a pension under either Option A or B provided for in § 16.14.
(Prior Code, § 16.12) (Ord. D-678, passed 1-18-1965, effective 2-1-1965; Ord. D-1592, passed 6-19-1989, effective 6-29-1989; Ord. D-1737, passed 3-20-1995, effective 3-30-1995; Ord. D-1833, passed 4-1-1999, effective 4-1-1999; Ord. D-1856, passed 7-24-2000, effective 8-3-2000; Ord. O-51, passed 8-7-2006, effective 8-17-2006)